More than any other country in the world, Portugal offers undeniable advantages (and also some disadvantages) for those who wish to settle there. In Portugal, it’s all about balance: between tradition and modernity, balance of temperatures and climate that erases excesses, between quality of life and proximity to France… and the list of reasons to move to Portugal is still long. Why move to Portugal? We tell you everything.
The major asset: the tax system
Let’s start with what attracts the most French people to Portugal these last years: the tax system. Indeed, living in Portugal allows you to make substantial tax savings. Indeed, in Portugal, there is no inheritance tax provided that the beneficiaries are also Portuguese residents. There is also no wealth tax on assets held in the country.
Income is taxed fairly lightly. Non-habitual residents (RNH) artists, scientists, engineers, architects, doctors benefit from a fixed tax rate of 20% for 10 years. If you are not part of these so-called “value-added” professions, you will be subject to the normal tax rate, which ranges from 14.5% to 48%. Finally, private retirees can benefit from a complete tax exemption for a period of 10 years from the date of their installation in the country.
👉 Find out how to pay less tax in Portugal
An advantageous cost of living
The cost of living is much lower than in France or Belgium. The Big Mac index of the very serious The Economist places France at 4.52 dollars against 3.48 dollars for Portugal, i.e. about 20% less. Overall, food is about 30% cheaper. A good lunch in a restaurant will cost you 40% less than in France.
house with swimming pool in Portugal
On the other hand, some consumption items are more expensive: electricity, cars, health. This is balanced by the substantial savings in heating costs, since in Portugal you only really need to heat your home for 1 or 2 months a year, and central heating does not usually exist.
👉 Read more about the cost of living in Portugal
A still favorable real estate context
Real estate has experienced a real boom in the last 10 years. Great deals have been made by a few inspired pioneers… but there are still opportunities. According to the Portuguese National Institute of Statistics (INE), real estate prices rose by more than 9% in 2017, after a 7% increase in 2016. It must be said that prices had fallen by 30% between 2008 and 2012 following the violent crisis that hit the country. In 4 years, the number of French people living in Portugal has increased fivefold to reach the figure of 50,000 today.
An exceptional quality of life
As a member of the European Union, Portugal offers great guarantees of political and economic stability and absolute simplicity to travel to France. The low level of immigration in the country tends to reinforce its security. The Portuguese coastline is 900 kilometers long and offers a large number of fine white sand beaches of a beauty that is difficult to describe. The natural parks are also of great beauty.
The Portuguese climate is also a great asset. Temperatures rarely drop below 10°C in winter and the temperature never drops below 16°C. The gastronomy, the kindness of the natives, the tranquility of Portugal cannot be quantified but they are real parameters for those who love tranquility.
The ease of doing business
In Portugal, you can create your company in one hour. This service called “Empresa na Hora” allows you to create a company by going to a single office. You can then open a quota company or a “uni-pessoal” company (by shares or personal) by filling in a few forms. You will then have to sign the articles of association before a notary and declare the start of your activity to the tax authorities.
The dynamic environment, the low hourly wage and the high level of training make Portugal a welcoming land for innovative companies that wish to mobilize their resources to develop their offer. Today, Lisbon alone has more than 80 incubators. There were none 7 years ago.
Modern and connected infrastructures
Portugal has many highways, 3 major airports, 4 cell phone and broadband internet operators. The means to stay connected to the rest of the world are therefore numerous and of a quality that meets European standards.
The country is also totally independent in terms of electrical energy, producing more electricity thanks to renewable energies than it consumes, another factor of price stability for a country that is now less subject to oil price variations.
